This guide is in English for now. The tool itself works in your language.
Billing › CGST, SGST or IGST?
CGST, SGST or IGST: which one to charge
GST is one tax with different names depending on where the sale goes. The rule fits in one line: same state, split it; different state, IGST.
The rule
| Your state vs place of supply | Charge | Example at 18% |
|---|---|---|
| Same state | CGST + SGST, half each | CGST 9% + SGST 9% |
| Same Union Territory without a legislature | CGST + UTGST, half each | CGST 9% + UTGST 9% |
| Different state or Union Territory | IGST, full rate | IGST 18% |
| Export, or supply to an SEZ | IGST (or zero-rated under a bond/LUT) | Depends on how you export |
The Union Territories without a legislature are Chandigarh, Ladakh, Lakshadweep, Andaman and Nicobar Islands, and Dadra and Nagar Haveli and Daman and Diu. Delhi, Puducherry and Jammu and Kashmir have legislatures, so they use SGST.
What "place of supply" means
- Goods that are moved: where the movement ends, usually the buyer's delivery address.
- Goods sold over the counter: where the goods are handed over, that is, your shop.
- Services to a registered business: usually the buyer's registered location.
- Services to an unregistered person: usually the buyer's address if known, otherwise where you provide the service.
Some services have their own rules (for example property, events, transport and telecom). Ask your accountant when unsure.
Three quick examples
- A shop in Ludhiana (Punjab) sells to a customer in Jalandhar (Punjab): CGST + SGST.
- A trader in Ludhiana ships goods to a buyer in Delhi: IGST.
- A web designer in Punjab bills a registered company in Haryana: IGST.
How the invoice maker decides
It compares your state with the place of supply. If you leave place of supply empty, it uses the buyer's state. Same state means CGST + SGST (or UTGST), different means IGST. The totals line under the items always says which one it used, so you can check before saving.